Automatic Merchandiser

AUG 2015

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

Issue link:

Contents of this Issue


Page 35 of 47

A d v e r t o r i A l | C o m p a n y p r o f i l e In vendIng, cash has always been king. Historically, the self- service industry has stood steadfastly by the reliability of cash and coin pay- ments. With a full understanding that the industry would "eventually" need to adopt cashless payments options, this cash-based business struggled to remain proftable in spite of cash intake remaining largely steady, even as customers were less-and-less inclined to carry cash. enter apple pay and android pay. Consumers' rapid adoption of mobile payment options and smartphone technology not only pushed cashless payments for everyday, small-ticket items front and center, but generated a tailwind which is changing the very dynamic of supply chain for the busi- ness. USa Technologies ("USaT"), a leader of wireless, cashless payment and m2m/ioT solutions for small-ticket, self-serve retailing, has not only seen a signifcant increase in cashless pay- ments by customers, but a new-found interest among self-serve retail com- panies in going 100 percent cashless, allowing consumers to pay the way they want and giving operators visibility into perishable stock and capitol on hand. in its recent Knowledge Base study on cashless transactions, USaT found that not only are consumers using their cards at a remarkable rate for small-ticket purchases, but they're actually buying more and purchasing higher-priced items. according to the study, average annual cashless sales increased 28 percent to $3,477 as of may 2015, (up from $2,719 as of may 2014), with consumers spending roughly 32 percent more when paying with a card versus cash. Vending companies are clamoring for cashless – many opting to equip 100 percent of their vending machines. "The economics of going cashless makes sense in terms of increased eff- ciencies and sales. We've been equip- ping cashless technology on machines for nearly 10 years. We believe this is the year it actually becomes the norm, rather than the exception, " said Steve Herbert, chairman and chief executive offcer of USaT. Take five Star food Service, one of the largest vending operators in the country with 15,000 vending machines across 200 routes, as well as numerous coffee operations, micro markets and 36 dining facilities throughout Tennes- see, Georgia and alabama. in 2015, the frm implemented cashless card read- ers on 10,000 of its 15,000 machines. on average, same store sales increased by 17 percent, and 24 percent once the "Go Cashless" educational campaign was launched. "Today's customers prefer to pay with their card or mobile wallet, and going cashless is not only enhancing our consumer experience, but improv - ing our economics," said Greg mcCall, senior vice president of sales and mar- keting at five Star food Service. Then, there's pepi food Services, a leader in vending and food services for nearly 29 years. With more than 1,400 points of sale, pepi became the frst company in the country to offer cash- less payment options on 100 percent of its machines with USaT's eport Con- nect in 2012. The move signifcantly impacted same-store vending sales as the average cashless vend was almost 50 percent higher than pepi's average cash transaction. "price just isn't as important as convenience, and the fexibility to spend money in whatever way custom- ers prefer," said Vic pemberton, Ceo and founder of the pepi Companies. "if it is in their pockets, it should work at all points of sale." "Cash may still be king, but with the introduction of cashless payments by more and more frms within the vending industry, its kingdom may soon be a lot smaller," said mr. Herbert. Contact us today at 800-633-0340 or visit The Year of 100% Cashless Consumers are buying more, higher-priced items. If it's in their poCkets , it should work at the poInt of sale . Customers are less-and-less inclined to carry cash. 36 automatic merchandiser august 2015

Articles in this issue

Links on this page

Archives of this issue

view archives of Automatic Merchandiser - AUG 2015